Robust volumes in July point to a recovery in the auto sector.
Easier credit availability and softening interest rates helped auto makers continue their trend of positive growth in the current fiscal. Vehicles sales started showing positive growth in February this year and have been hovering at around 8 per cent plus growth rates in the current fiscal. Auto companies which had been struggling with depressed demand in the second half of 2008-09, reported double-digit growth rates for July, 2009 with leaders-Maruti Suzuki and Hero Honda-experiencing a 30 per cent y-o-y growth. We highlight the performance of the key listed players in the major auto segments.
Two-wheelers
The two-wheeler segment has been the least impacted among all the auto categories registering a 15 per cent y-o-y growth in July and an 11 per cent growth in year-to-date sales. While Hero Honda continues its strong run due to a robust showing from the rural segment which contributes to about half of its sales, Bajaj Auto’s declining sales seems to have bottomed out. TVS Motors also saw higher growth rates on sequential, yearly and year-to-date numbers.
The battle in the motorcycle space which is the largest in two wheeler category is likely to shift to the executive segment (100 cc+ upto 125 cc) with Bajaj launching 100cc Discover DTS-Si bike in July. While Hero Honda’s dominance is unlikely to be challenged in the rural sector anytime soon, Discover is aimed at grabbing customers away from Hero Honda’s top-selling executive segment models – Splendour and Passion. Both companies are also looking at tapping the low-cost bike market with prices expected to hover at about Rs 20,000. Going ahead, expect Hero Honda and TVS to post double digit growth and Bajaj Auto to improve its position from flat sales growth. The key concern, especially for Hero Honda, will be a deficient monsoon which is likely to drag down sales from the rural segment.
Cars, UVs and tractors
Passenger car sales which had jumped 18 per cent in June are expected to post 20 per cent y-o-y growth rates for July. Small-car king Maruti Suzuki and utility vehicle leader Mahindra & Mahindra (M&M) have reported strong volumes. Maruti Suzuki recorded a 27 per cent increase in the domestic market aided by strong sales from the A2 (A-Star, Swift, Ritz) and A3 segments. Combined with exports of A-Star, total sales volume jumped 33 per cent y-o-y. For M&M, a good showing of recently launched Xylo helped it record a sharp 56 per cent y-o-y jump in utility vehicle sales. The company’s tractor sales also recorded an impressive 72 per cent y-o-y growth due to a low base and strong demand. Tata Motors managed a 21 per cent y-o-y growth in the passenger car segment thanks to the 2,500 units sold on account of Nano and 2,690 units from its Fiat JV. Going ahead, while Maruti will be looking at exports to boost its sales, Tata Motors will be eyeing the 1.55 lakh bookings for the Nano to ramp up its numbers.
Commercial vehicles
The CV segment, which has been the worst-hit among the auto segments due to the economic slowdown and lack of credit availability, has been on a downward trajectory since August 2008. But, going by the numbers over the last four months it looks like the sector has seen off the dip experienced in December where total CV sales stood at 20,000. July numbers are expected to be double this figure. Tata Motors, the largest commercial vehicle manufacturer in the country, saw a 6 per cent growth y-o-y in M&HCV sales to about 10,000 units. This is the first time in over a year that the manufacturer has seen a positive growth. The LCV show for this company was even more impressive as it registered a 44.5 per cent growth due to a strong demand for goods carrier Ace and passenger vehicles, Winger and Magic. The other major player Ashok Leyland, continues to face problems with July sales down 34 per cent over the previous period. Since October 2008, the company has been registering a 50 per cent fall in sales volumes till June 2009. While a major turnaround for both these players will depend on the pickup in economic activity, higher bus sales due to JNNURM projects should boost sales going ahead.
Conclusion
With private sector banks coming back to the auto loan segment and demand picking up the future looks good for the auto sector. Further cost cutting measures, excise breaks and a dip in commodity prices have helped companies improve their margins. All companies reported a smart rise in margins, barring Ashok Leyland which saw its margins fall to just 1.2 per cent in June quarter. Overall, strong volume growth (except M&HCV) across categories and improvement in margins enabled the sector to report a 23-24 per cent y-o-y rise in adjusted net profits for the quarter. Going ahead, analysts expect nearly all companies to report positive growth in revenues, operating profits and net profits for 2009-10, except for Tata Motors, which is expected to report a lower (though lower y-o-y) due to Jaguar and Land Rover operations.
Companies have not completely passed on the excise duty benefits and are likely to use the surplus to aggressively promote new launches. Though there are signs of a turnaround as the sector has been exhibiting consistent numbers, stocks of auto majors (see chart price performance) despite the recent correction, are up significantly. The biggest gainers over the last one month have been Tata Motors (48 per cent) and Maruti Suzuki (20 per cent). Analysts believe that the stocks are trading at close to their 52-week highs and future prospects on account of higher sales are already priced in.
Showing posts with label tata mootors. Show all posts
Showing posts with label tata mootors. Show all posts
100,000 Tata Nano the people's car owners chosen
Tata Motors is pleased to announce that it has completed the process to select the first 100,000 owners of the Tata Nano from among the 2,06,703 final list of applicants who had booked the car. As announced at the launch on March 23, the first 100,000 owners were selected through a computerised random selection process. The company had said that the process would be completed within 60 days of the closure of booking on April 25.
The booking process had also given the option to applicants to indicate whether they would like to retain their booking amounts with the company, even if they do not get selected among the first 100,000 allottees, and await delivery of their cars after them. 67% (137,867) applicants had chosen this option, from which a further 55,021 retainees have been made allotments. The booking amounts of the unsuccessful applicants, who had not exercised this option, are being returned.
The company will be individually informing all applicants about their status of being an allottee, retainee or an unsuccessful applicant. The details have been uploaded on www.tatanano.com . Applicants need to log on with their booking application number to know their status or contact the company appointed call centre (020 66495678).
Allotment Results - Click Here to Know the status of your booking (with Faq's)
The first 100,000 owners
Deliveries will begin from July 2009 and the first 100,000 deliveries are expected to be completed by the last quarter of 2010. All efforts will be made to deliver earlier, by ramping up production at the already operational Pantnagar plant and the fast upcoming S anand plant. The successful allottees will also be sent discount vouchers of Titan and Westside valid at their outlets across India.
Tata Motors reconfirms that the first 100,000 owners are price-protected, and will get their Tata Nano at the ex-showroom prices, announced at launch on March 23.
The Retainees
The deliveries to the 55,021 retainees will begin after the first 100,000 deliveries.
Tata Motors reconfirms that the retainees will benefit from an interest of 8.5% on their booking amount if the car is delivered within two years from the date of allotment (23rd June 2009) and 8.75% if the car is delivered after two years from the date of allotment. The interest will be paid directly to the retainees by Tata Motors.
Along with the confirmatory letter, Tata Motors is making retainees an exciting offer on the Tata Indica range over and above any current scheme on these cars in the market, in addition to discount vouchers of Titan and Westside which can be used at any outlet of these companies across India
Tata Motors’ preferred financiers have announced auto retail loans with aggressive low-interest schemes. The allottees & retainees, who had availed of booking finance, can approach them to convert their booking amounts into auto retail loans and also to finance the remaining amount. The interest rates offered by the preferred financiers are:
Offer for unsuccessful applicants
As a token of its appreciation for their interest in the Tata Nano, Tata Motors is also making unsuccessful applicants an exciting offer on the Tata Indica range over and above any current scheme on these cars in the market. The scheme is being communicated to them individually. They will also be sent discount vouchers of Titan and Westside which can be used at any outlet of these companies across India.
Tata Motors once again places on record its gratitude to the people of India for according such a warm welcome to the Tata Nano, as also to all its preferred financiers, dealers and partner companies for their stupendous effort in helping the company launch the Tata Nano.
The booking process had also given the option to applicants to indicate whether they would like to retain their booking amounts with the company, even if they do not get selected among the first 100,000 allottees, and await delivery of their cars after them. 67% (137,867) applicants had chosen this option, from which a further 55,021 retainees have been made allotments. The booking amounts of the unsuccessful applicants, who had not exercised this option, are being returned.
The company will be individually informing all applicants about their status of being an allottee, retainee or an unsuccessful applicant. The details have been uploaded on www.tatanano.com . Applicants need to log on with their booking application number to know their status or contact the company appointed call centre (020 66495678).
Allotment Results - Click Here to Know the status of your booking (with Faq's)
The first 100,000 owners
Deliveries will begin from July 2009 and the first 100,000 deliveries are expected to be completed by the last quarter of 2010. All efforts will be made to deliver earlier, by ramping up production at the already operational Pantnagar plant and the fast upcoming S anand plant. The successful allottees will also be sent discount vouchers of Titan and Westside valid at their outlets across India.
Tata Motors reconfirms that the first 100,000 owners are price-protected, and will get their Tata Nano at the ex-showroom prices, announced at launch on March 23.
The Retainees
The deliveries to the 55,021 retainees will begin after the first 100,000 deliveries.
Tata Motors reconfirms that the retainees will benefit from an interest of 8.5% on their booking amount if the car is delivered within two years from the date of allotment (23rd June 2009) and 8.75% if the car is delivered after two years from the date of allotment. The interest will be paid directly to the retainees by Tata Motors.
Along with the confirmatory letter, Tata Motors is making retainees an exciting offer on the Tata Indica range over and above any current scheme on these cars in the market, in addition to discount vouchers of Titan and Westside which can be used at any outlet of these companies across India
Tata Motors’ preferred financiers have announced auto retail loans with aggressive low-interest schemes. The allottees & retainees, who had availed of booking finance, can approach them to convert their booking amounts into auto retail loans and also to finance the remaining amount. The interest rates offered by the preferred financiers are:
| Retail Loan | |||
| Bank Name | Tenure (up to) years | LTV | Rate range |
| BANK OF BARODA | 7 | 85% | 10.50% |
| CANARA BANK | 7 | 90% | 9.5-11.5% |
| CENTRAL BANK OF INDIA | 7 | 80% | 9.5-11% |
| CORPORATION BANK | 7 | 85% | 10.5-11.25% |
| ICICI BANK LTD | 2-3 | 80% | 13.50% |
| INDIAN BANK | 5 | 85% | 11.00% |
| ORIENTAL BANK OF COMMERCE | 7 | 85% | 11-11.5% |
| PUNJAB NATIONAL BANK | 7 | 80% | 11.00% |
| STATE BANK OF BIKANER & JIPUR | 5 | 85% | 10-11.5% |
| STATE BANK OF HYDERABAD | 7 | 80% | 11-11.25% |
| STATE BANK OF INDIA | 5 | 85% | 11.75-12% |
| STATE BANK OF INDORE | 5 | 80% | 12.00% |
| STATE BANK OF MYSORE | 7 | 85% | 11.25-11.75% |
| STATE BANK OF PATIALA | 5 | 80% | 12.00% |
| STATE BANK OF TRAVANCORE | 7 | 85% | 11.75-12% |
| TATA MOTORS FINANCE LTD | 4 | 90% | 13.5-14.5% |
| THE FEDERAL BANK LTD | 5 | 90% | 14.25% |
| UNION BANK OF INDIA | 5 | 85% | 11-11.5% |
| UNITED BANK OF INDIA | 5 | 90% | 9.00% |
| UCO BANK | 5 | 85% | 11.75% |
Offer for unsuccessful applicants
As a token of its appreciation for their interest in the Tata Nano, Tata Motors is also making unsuccessful applicants an exciting offer on the Tata Indica range over and above any current scheme on these cars in the market. The scheme is being communicated to them individually. They will also be sent discount vouchers of Titan and Westside which can be used at any outlet of these companies across India.
Tata Motors once again places on record its gratitude to the people of India for according such a warm welcome to the Tata Nano, as also to all its preferred financiers, dealers and partner companies for their stupendous effort in helping the company launch the Tata Nano.
Car majors tread digital marketing route to rope in tech-savvy buyers
After the rural market rejuvenated car sales, auto companies are now building on digital marketing activities to tap onto a new set of tech savvy customers. The strategy is to generate business through consumer interface over internet and mobile phones, say auto marketers.
Maruti claims over a lakh cars it sold last year originated from digital marketing initiatives while Tata Motors saw 4,000 customers booking its low-cost car Nano over the internet. Other automakers are also witnessing a similar response on their digital platforms.
Honda’s third generation of flagship car, City, regained its leadership position in the mid-size car segment in the first month of its launch in November on the back of strong digital interface with customers. Not to be left behind, Volkswagen is using Net and mobile to tap the 2.5-lakh strong customer base in India, owning cars over Rs 10 lakh, for its Jetta and Passat premium sedans.
Passenger carmaker leader Maruti Suzuki India (MSI) first tasted success with online marketing with its small car A-Star , which generated huge interest on the net with over 2.5 lakh online hits. “We sold around 4,000 A-Stars based on customer interface on internet and have doubled online marketing activity for the new hatchback Ritz with a microsite launched a week ahead of the launch and offering various exclusive options to loggers.
Around 17-18 % of our sales now are estimated to originate from digital marketing from mere 2-3 % in 2005,” MSI chief general manager (marketing) Shashank Srivastava said.
Other carmakers are also actively tapping the interactive social networking sites and blogs on the web advertising space.
Honda is launching a new programme in July to track sales originating from net. “Our cars are primarily targeted at rich and younger customer who are net savvy and take keen interest in blogs and different web activities. Digital marketing helps us build a strong brand,” Honda Siel Cars veep (sales & marketing) Jnaneshwar Sen said. He added that preliminary estimates suggest internet is responsible for 5% of Honda’s total sales in India.
Earlier, Tata Motors’ dedicate website on Nano got a little over 30-million hits from the date of launch of the car to the closure of the booking. “Its easier to reach professional like doctors, engineers and chartered accountants and other target audience with a strong influence on their purchase decision,” said Amardeep Bajpai of Webisdom, an internet marketing solution company.
Maruti claims over a lakh cars it sold last year originated from digital marketing initiatives while Tata Motors saw 4,000 customers booking its low-cost car Nano over the internet. Other automakers are also witnessing a similar response on their digital platforms.
Honda’s third generation of flagship car, City, regained its leadership position in the mid-size car segment in the first month of its launch in November on the back of strong digital interface with customers. Not to be left behind, Volkswagen is using Net and mobile to tap the 2.5-lakh strong customer base in India, owning cars over Rs 10 lakh, for its Jetta and Passat premium sedans.
Passenger carmaker leader Maruti Suzuki India (MSI) first tasted success with online marketing with its small car A-Star , which generated huge interest on the net with over 2.5 lakh online hits. “We sold around 4,000 A-Stars based on customer interface on internet and have doubled online marketing activity for the new hatchback Ritz with a microsite launched a week ahead of the launch and offering various exclusive options to loggers.
Around 17-18 % of our sales now are estimated to originate from digital marketing from mere 2-3 % in 2005,” MSI chief general manager (marketing) Shashank Srivastava said.
Other carmakers are also actively tapping the interactive social networking sites and blogs on the web advertising space.
Honda is launching a new programme in July to track sales originating from net. “Our cars are primarily targeted at rich and younger customer who are net savvy and take keen interest in blogs and different web activities. Digital marketing helps us build a strong brand,” Honda Siel Cars veep (sales & marketing) Jnaneshwar Sen said. He added that preliminary estimates suggest internet is responsible for 5% of Honda’s total sales in India.
Earlier, Tata Motors’ dedicate website on Nano got a little over 30-million hits from the date of launch of the car to the closure of the booking. “Its easier to reach professional like doctors, engineers and chartered accountants and other target audience with a strong influence on their purchase decision,” said Amardeep Bajpai of Webisdom, an internet marketing solution company.
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